Which of the following options is a better purchase for a bicycle? Option 1: A cash sale for $88 Option 2: $5 down with equal payments of $8 for 10 weeks Option 3: $12 down with equal payments of $5 for 12 months Option 4: $20 down with equal payments of $20 for 12 months

Question

Bailey Hogan

Mathematics

9 December, 00:55

Which of the following options is a better purchase for a bicycle? Option 1: A cash sale for $88 Option 2: $5 down with equal payments of $8 for 10 weeks Option 3: $12 down with equal payments of $5 for 12 months Option 4: $20 down with equal payments of $20 for 12 months

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Nicolas Huynh · Answer 1

Option 3 is the best way to purchase this bicycle. The product costs $88 for cash and carry. If I pay $5 each month for 12 months, that's $60. Then, there's the deposit of $12. So, my total expense for Option 3 is $72. Thus, I can save $16 relative to Option 1 and have a nice payment plan. I also save money relative to Options 2 and 4.